I need the reasoning behind the answer for this question explained, please.
At Harry’s Discount Hardware everything is sold for 20% less than the price marked. If Harry buys tool kits for $80, what price should he mark them if he wants to make a 20% profit on his cost?
The answer given is $120.
My reasoning was to find 20% of 80 then subtract it from 80, then add it back and the answer would be 80. Upon recognizing the abject failure of this attempt I reasoned it another way: he wants to make a 20% profit and the discount for everything would be 20%, so I found 40% of 80, 32, and added it to 80. The answer equaling $112. I used 40% because splitting it in half gives 20 a piece. One of the 20%'s is the profit and the other is the discount.
In truth my understanding of the question is a little murky and my reasoning skills are unenviable.